INTERRENT ANNOUNCES $39.5 MILLION ACQUISITION IN MISSISSAUGA, ONTARIO
NOT FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES
Ottawa, Ontario(September 3, 2014) – InterRent Real Estate Investment Trust (TSX-IIP.UN) (“InterRent”) announced today that it has entered into an unconditional agreement to acquire a property in Mississauga consisting of 1 high-rise and 13 low-rise apartment buildings. In total, the acquisition will add 232 suites to the InterRentportfolio.
The property is located at 6599 Glen Erin Drive, directly adjacent to InterRent’s 2757 Battleford Road property, and across the street from the Meadowvale Town Centre. The site borders the walking trails around Lake Aquitaine Park and has easy access to the area from Erin Mills Parkway and Highways 401 and 407.
The high-rise contains 74 suites and the low-rises total 158 suites, for a total addition of 86 1-bedroom and 146 2-bedroom suites to InterRent’s portfolio. The Battleford Road and Glenn Erin Drive properties form one complex of 416 suites and share resident amenities including a fitness center and outdoor pool.
The acquisition is expected to be completed in early December at a purchase price of $39,500,000 or $170,259 per suite. The property is being purchased with a going in capitalization rate of 5.3% which is immediately accretive to the REIT, and will be financed through a new conventional first mortgage.
“We are very pleased to announce the acquisition of this well maintained property to the InterRent portfolio. This is a strong market within the GTA and our neighboring Battleford property has performed very well since our acquisition in June of 2012. Having both properties under InterRent’s ownership will create operational efficiencies for both properties as well as new opportunities to increase their marketability.” said Mike McGahan, CEO.
InterRent REIT is a growth-oriented real estate investment trust engaged in increasing Unitholder value and creating a growing and sustainable distribution through the acquisition and ownership of multi-residential properties.
InterRent’s strategy is to expand its portfolio primarily within markets that have exhibited stable market vacancies, sufficient suites available to attain the critical mass necessary to implement an efficient portfolio management structure and, offer opportunities for accretive acquisitions.
InterRent’s primary objective is to use the proven industry experience of the Trustees, Management and Operational Team to: (i) provide Unitholders with stable and growing cash distributions from investments in a diversified portfolio of multi-residential properties; (ii) enhance the value of the assets and maximize long-term Unit value through the active management of such assets; and (iii) expand the asset base and increase Distributable Income through accretive acquisitions.
Forward Looking Statements
This news release contains “forward-looking statements” within the meaning applicable to Canadian securities legislation. Generally, these forward-looking statements can be identified by the use of forward-looking terminology such as “plans”, “anticipated”, “expects” or “does not expect”, “is expected”, “budget”, “scheduled”, “estimates”, “forecasts”, “intends”, “anticipates” or “does not anticipate”, or “believes”, or variations of such words and phrases or state that certain actions, events or results “may”, “could”, “would”, “might” or “will be taken”, “occur” or “be achieved”. InterRent is subject to significant risks and uncertainties which may cause the actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by the forward looking statements contained in this release. A full description of these risk factors can be found in InterRent’s most recently publicly filed information located at www.sedar.com. InterRent cannot assure investors that actual results will be consistent with these forward looking statements and InterRent assumes no obligation to update or revise the forward looking statements contained in this release to reflect actual events or new circumstances.
For further information about InterRent please contact:
|Mike McGahan||Curt Millar, CA|
|Chief Executive Officer||Chief Financial Officer|
|Tel: (613) 569-5699 Ext 244||Tel: (613) 569-5699 Ext 233|
|Fax: (613) 569-5698||Fax:(613) 569-5698|
|web site: www.interrentreit.com|
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for the adequacy or accuracy of this release.